NFTs (non-fungible tokens) were "all the rage" in 2020 and 2021. Since then, the NFT market has cooled considerably, leaving many to wonder if this digital art form was a temporary phenomenon. While the novelty of NFTs has somewhat receded, AI-generated NFTs have generated new interest among the general public. In addition, NFT creators are using AI to create animated NFTs that can spontaneously interact with individuals. Alternatively, NFT collectors use AI to gain an edge in the marketplace and avoid fraud.

In the new world of virtual existence, the first AI-powered NFT collection was launched by XANA. The collection includes 10,000 original avatars with a Japanese anime aesthetic which would serve as a customised AI ally across the metaverse. The NFT collection is inspired by Blade Runner 2049 to cater to the demand of personalised avatars for the metaverse. Other features that the NFT collection carries are full commercial rights and the power of the AI engine, among several other ecosystem privileges. Here comes the reveal of #XANA Genesis Project The first-ever original AI-based #NFTs of XANA.

A virtual anime version of Sophia, the world-famous humanoid artificial intelligence (AI) robot, is set to be tokenized and auctioned off as part of an up-and-coming Metaverse project dubbed "Noah's Ark." Sophia was developed by Hong Kong-based firm Hansen Robotics in 2016 and is known across the globe for her conversation skills and articulate speaking ability. In her first 5 years, Sophia has addressed the United Nations and obtained Saudi citizenship. Earlier this month, former Hansen Robotics CEO and Sophia co-creator Jeanne Lim launched a virtual anime version of the robot dubbed "Sophia beingAI" at her new company beingAI under a perpetual license and co-branding partnership. According to the Dec. 7 announcement, beingAI has partnered with intelligent nonfungible token (iNFT) production firm Alethea AI to launch 100 iNFTs featuring Sophia beingAI on Binance's NFT marketplace in an Intelligent IGO (Initial Game Offering) on Dec. 16. The auction will take place over 5 days, with twenty iNFTs being released each day until it concludes on Dec. 21.

The NFT market has surged to $2.5 billion in sales during the first half of this year, while it was worth just $13 million at the same time last year. A number of NFT trends are riding this towering wave. The first trend is the rise of the sophisticated metaverse. In the current metaverse, you can buy virtual land, digital artworks, avatars, and more NFTs. These assets are non-fungible -- meaning that each one is unique and cannot be replicated or cloned.